back to article US v Sam Bankman-Fried trial begins ... as imploded crypto-biz boss sues his insurer

The first of two US government prosecutions of former FTX CEO Sam Bankman-Fried commenced in New York on Monday, only a day after the cryptocurrency tycoon sued his own insurance company for failing to cover his legal costs. Jury selection commenced on Monday in the case concerning whether Bankman-Fried diverted billions of …

  1. Anonymous Coward
    Anonymous Coward

    It’s like a kids playground spat

    Instead of marbles, it’s over billions of evaporated dollars.

    1. Blazde Silver badge

      Re: It’s like a kids playground spat

      I'm a little disappointed in nearly one year he's not managed to burn through a mere $10mil in legals. A man who used to move billions between petty cash funds before breakfast..

      Can I still buy 'SBK to represent himself' in the sweepstake?

  2. Anonymous Coward
    Anonymous Coward

    I'm sure he will get punished just the same as a "normal" citizen. Right? His family's connections, his donations to politicians, and his tribe membership surely won't count as mitigating circumstances. Right?

    1. imanidiot Silver badge

      His family is under legal fire of their own (or at least his parents are) for willingly and knowingly taking advantage of the fraud and embezzlement themselves and many of the people he defrauded are those of his tribe. The donations to politicians only became problematic because of that meaning politicians will be dropping him like a hot potato too. He's screwed the pooch SO badly he's run out of friends to help him and he's going to go away for a LONG time. As are his parents probably.

    2. Anonymous Coward
      Anonymous Coward

      He'll go to jail for sure. The politicians are off the hook and only a fraction of the money that went that way will be clawed back.

      1. Yet Another Anonymous coward Silver badge

        Remember when buying politicians - always keep the receipt

    3. katrinab Silver badge

      I think it will actually count as agrivating circumstances. The politicians will be more than happy to throw him under the bus to protect themselves.

  3. Howard Sway Silver badge

    Depends on the small print

    Pretty crazy that he was able to buy an insurance policy that covered his costs in the event that he was prosecuted for fraud he committed himself. It's the equivalent of selling burglar accident insurance that pays out if you fall off a ladder whilst breaking into someone's house.

    I'm guessing that the insurance company are yet more fools that thought he was some special genius who'd discovered a miraculous new source of wealth creation that every tradier during the past couple of millennia had somehow failed to notice.

    1. I ain't Spartacus Gold badge

      Re: Depends on the small print

      I would guess that it covers for him being sued for whatever, but not for him if he's committed deliberate fraud. The problem being he's not been convicted. So can they refuse to pay him on the grounds they think he's guilty and certainly won't be able to pay them their money back if he is convicted? Also, are they paying for him to be able to sue them to make them pay for him?

      1. sitta_europea Silver badge

        Re: Depends on the small print

        It's an insurance company.

    2. Lurko

      Re: Depends on the small print

      But the world falls for it time and again, whether we're talking investors, lenders, or insurers - Theranos, Worldcom, Enron, Lehman, etc etc.

    3. Missing Semicolon Silver badge

      Re: Depends on the small print

      All directors have liability insurance. It's how they get to keep their mansions when they mismanage their companies.

    4. aerogems Silver badge

      Re: Depends on the small print

      It's pretty standard for companies to have this kind of insurance. It's usually baked into a top execs contract that the company foots the bill for any legal expenses that may arise as a result of their time on the job. Plus, any time a company becomes even moderately successful, all the crazies come out of the woodwork with bullshit lawsuits hoping to get lucky. Think patent trolls, only with even flimsier claims. You just don't usually hear about a lot of these lawsuits because they're not even worth the ink (or electrons) to print (or display) they're so stupid. Still, even these usually require hiring an outside law firm to handle and that costs at least a couple grand.

    5. Boris the Cockroach Silver badge

      Re: Depends on the small print

      Its an insurance company, their jobs depend on them finding ways to avoid paying out

      Such as refusing to pay out on a burglary claim because of faulty locks on the back door, the fact the burglars kicked in the front door is of no matter to them.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Other stories you might like